China's Gold Buying Amid 16% Price Drop — Record High Since 2023
By John Nada·Jul 8, 2026·2 min read
China’s PBoC buys 14.93 tonnes of gold amid a 16% price drop, marking the largest purchase since 2023 as it navigates geopolitical shifts.
China’s central bank, the People’s Bank of China (PBoC), has added a hefty 14.93 tonnes of gold to its reserves in June 2026—its largest single-month purchase since 2023, according to China’s State Administration of Foreign Exchange. Even more striking, this acquisition occurred during gold’s sharpest quarterly decline in 13 years, with prices dipping 16% and touching a low of about $4,002 per ounce.
This buying spree marks the 20th consecutive month of gold purchases by the PBoC, the longest streak since at least 2015. In a world where central banks allocate rather than trade, these actions reflect a long-term strategic objective rather than a reactionary maneuver to short-term market fluctuations. GoldSilver.com reports that gold makes up less than 10% of China’s total foreign exchange reserves, a stark contrast to the United States and Germany, where gold accounts for roughly 70%.
But why buy when prices are down? The PBoC seems focused on a broader horizon—gold as a safeguard against the vagaries of geopolitical shifts and the potential constraints of the dollar-dominated global financial system. In fact, gold stands as one of the few assets immune to sanctions and free from counterparty obligations. According to the World Gold Council, central banks globally have averaged about 1,000 tonnes of gold purchases annually since 2022, doubling the pace of the previous decade.
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Juan Carlos Artigas, the World Gold Council’s Regional CEO for the Americas, points out that organic demand from long-term buyers across multiple regions can drive a rebound from current pressures. The Council's survey revealed that 89% of reserve managers expect a rise in global central bank gold holdings within the next year.
The timing aligns intriguingly with upcoming economic reports and the July 29 FOMC meeting, where shifts in monetary policy could influence gold’s trajectory. While inflation data, particularly the June CPI figures set for release on July 14, might sway the Fed's rate decisions, the PBoC’s steadfast accumulation suggests a strategy impervious to immediate U.S. policy changes.
Amidst these maneuvers, a subtle narrative unfolds. The PBoC, managing the world's primary alternative reserve currency, continues to fortify its position outside of the dominant dollar system. Their sustained gold buying underscores an enduring belief in gold's role as an independent store of value. Will others follow suit?